chapter 3: receiving orders · • perform cross-docking for a warehouse receipt. introduction...

Chapter 3: Receiving Orders

3-1

CHAPTER 3: RECEIVING ORDERS Objectives

The objectives are:

• Receive and put away items on different zones of a location. • Cancel a posted receipt. • Perform cross-docking for a warehouse receipt.

Introduction Warehouse receipts ensure the availability of items in a particular quantity, type, and quality in a warehouse.

This chapter explains how the Warehouse Management Systems (WMS) functionality in Microsoft Dynamics® NAV 2009 helps companies to manage the receipt of inbound orders and handle the process of putting the items away in an efficient way. Inbound orders are:

• Purchase orders • Inbound transfer orders • Sales return orders

Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement

Warehouse Management in Microsoft Dynamics® NAV 2009

3-2

Receive and Put-away Receiving orders with WMS provides new options for defining where and how the items are received and expedited further in the warehouse process.

Prior to receiving, an inbound document must be created and released before the warehouse personnel are able to view the order lines. Apart from being a working document, the receipt can also work as an indication of what the warehouse expects, and thereby allow for planning workloads more efficiently. The receipt can either be created from an inbound order or from the Microsoft Dynamics NAV 2009 main menu. If the receipt is created from an inbound order, more than 1 inbound source document can be retrieved for the receipt. With this you can register many items arriving from different inbound orders with one receipt.

When items arrive to the warehouse, an employee must handle and register the arrival and insert the exact received amount into the related document. When the warehouse employee posts the receipt, the items become part of inventory available for sale (but not yet ready for picking).

When the receipt document is posted, a put-away document is created. This document is an instruction to the warehouse personnel at the receiving area to take the received item and place it in a designated place suggested by the program.

At this point, the suggested zone and bin can be altered if the placement suggested by the program is not convenient.

The put-away document can be registered, and both the receiving and the put-away can be viewed under Posted Receipts and Registered Put-aways.

NOTE: Registering something creates an entry in the program that records an action completed in the warehouse. Registering differs from posting in that it does not create any entries in the general ledger or the inventory item ledger.

After registering the put-away document, the items are available for picking.

When the warehouse has completed these tasks, the source document can be invoiced.

The following scenario illustrates the processes of receiving and putting away the items using data from the demonstration database.

Scenario: Receive and Put Away the Items

A buyer at Cronus creates a purchase order for 12 units of item LS-100 from vendor 62000. The receipt of items is requested on January 25, 2001.

When handling this scenario, items are to be shipped to the WHITE warehouse.



3-3

When the items arrive at the warehouse, the warehouse personnel must perform a series of tasks to make items available for sale and picking.

To reflect these procedures in the program, it is necessary to create the purchase order for 12 pieces of item LS-100 from vendor 62000 first.

FIGURE 3.1 A NEW PURCHASE ORDER CREATED

Since this item is not a finished item, its components must be purchased as individual items.

1. On the Lines FastTab, click the Actions icon (a lightning bolt), then click Functions, Explode BOM. From the two options, select Copy dimensions from BOM.

FIGURE 3.2 SELECTING THE BOM EXPLODING METHOD



3-4

2. Click OK to let the program retrieve the item components from the bill of materials of item LS-100.

FIGURE 3.3 THE BILL OF MATERIALS EXPLODED

3. On the menu bar, click Actions, Functions, and then click Release

to release the order.

NOTE: The order can also be released by clicking Release on the Action Pane.

Receiving the Items

Receiving is the first stage in the inbound warehouse flow, and the released purchase order is a request to the warehouse personnel to handle the arrival of items. These requests can be viewed in the warehouse receipt list.



3-5

In Microsoft Dynamics NAV 2009, a warehouse receipt can be created from two functional areas:

• Purchase: The receipt can be created through the released purchase order. To achieve this, in the Navigation Pane, click Home, Purchase Orders, Released. Open a released purchase order and click Actions, Functions, and then click Create Whse. Receipt.

• Warehouse: The receipt document is created manually from the released purchase order. This can be done in two ways, either by getting the source document, or by using the source document filtering option.

To create a receipt manually from the Role Center Home page:

1. On the Activities part, click New Whse. Receipt. 2. Press Enter to assign a receipt number to this document. 3. In the Location Code field, select the White location. 4. The Zone Code and the Bin Code fields are filled in by the program

with the default information from the location card.

FIGURE 3.4 A NEW WAREHOUSE RECEIPT CREATED



3-6

Now it is necessary to fill in the receipt with the lines from the released source document (the purchase order) containing the quantities that are not yet received. There are two ways to do this:

• Click Actions, Functions and then click Use Filters to Get Src. Docs. The Filters to Get Source Docs. - Inbound window appears, and it does not have any filters defined. Set up the relevant filter, then click Run, and the program will retrieve the lines from the entire released source document that meet the criteria and the program will also add the lines to the warehouse receipt.

• Click Actions, Functions and then click Get Source Documents. The Inbound Source Documents window appears with a list of all released inbound documents. Select a document to have the program copy the information from it to the receipt lines.

NOTE: Alternatively, click the Get Source Documents and Use Filters to Get Src. Docs. buttons located on the Action Pane.

In this scenario, the warehouse employee will use the Use Filters to Get Src. Docs. option to retrieve the released purchase order lines for vendor Walker.

5. Click Actions, Functions and then click Use Filters to Get Src. Docs. The Filters to Get Source Docs. - Inbound window appears.

It is necessary to specify the filter for the source documents. When a filter is set up for its first usage, enter a code for it in the Code field, and then open the filter card to specify the parameters. To set up the filter:



3-7

6. In the Filters to Get Source Docs. - Inbound window, in the Code field, enter POWALK and, in the Description field, enter the description text as shown in the following illustration.

FIGURE 3.5 SETTING THE FILTER TO RETRIEVE THE LINES



3-8

7. Click Modify. The Source Document Filter Card - Inbound window appears.

FIGURE 3.6 THE FILTER CARD FOR PURCHASE ORDERS FROM POWALK

8. On the General FastTab, select the relevant check boxes to define

specific filters. Clear the Sales Return Orders and the Inbound Transfers check boxes, as shown above.

9. Expand the Purchase FastTab. In the Buy-from Vendor No. field, enter 62000, and in the Planned Receipt Date Filter field, enter 012510.



3-9

10. Click Run. The program retrieves all the released purchase document lines with a requested receipt date of January 25, 2010, and it copies the lines to the Warehouse Receipt window.

11. Delete the first two receipt lines so that the items for the purchase order just created are only received.

FIGURE 3.7 THE PURCHASE ORDER LINES ENTERED IN THE WAREHOUSE RECEIPT

12. Fill in the Vendor Shipment No. field on the General FastTab, and

note that the Qty. to Receive fields on the lines are filled in automatically by the program.

13. Click Post Receipt on the Action Pane. Confirm the posting of the receipt. The program displays the following message:

FIGURE 3.8 INFORMATION MESSAGE



3-10

14. Click OK to confirm.

The program has now:

• Updated the relevant quantity fields on the lines of the source document, in this case the purchase order, and the posted receipt. The items are now part of inventory, available for sale but not yet available for picking.

• Created a put-away activity, which is used to perform the next task in the receiving process - putting items away.

• Created warehouse entries in Warehouse Register as well as item ledger entries in Item Register.

Putting the Items Away

When the warehouse receipt is posted, the program creates a put-away document. A put-away document is an instruction to the warehouse personnel to move the received items from the receiving area to the storage area. In this process, the program is guided by the settings of the put-away template and by bin ranking suggesting where to put away the received items.

Demonstration: Put the Items Away

The procedure for putting items away is as follows:

1. On the Activities part of the Home page, click Put-aways - All. 2. Browse to the put-away document just created and open it.

FIGURE 3.9 THE WAREHOUSE PUT-AWAY DOCUMENT



3-11

The Warehouse Put-away window contains the data from the lines in the relevant posted warehouse receipt document. The information is presented through the Take and Place activity lines, which make up a put-away. The Take line indicates which zone and bin an item is taken from, while the Place line suggests to which zone and bin the item is placed. The put-away activity must now be handled and quantities registered.

In this case, on the Place lines, the program suggests that the items be put away in the BULK zone. The line can be changed, if necessary: for example, another bin can be chosen within the given zone, or the items can be stored in a new location by changing the zone and finding a suitable bin.

Register the put-away document by doing the following:

3. Click Register Put-away on the Action Pane.

The program deletes the put-away lines and registers the information in the registered put-aways. At the same time, it deletes the lines in the initial receipt document. The items are now available for picking.

If choosing to store the items in different places after put-away, on the Place line for the item in question, change the value of the Qty. to Handle field to a lower value. Then click the Actions icon (lightning bolt), and then click Functions, Split line. The program creates a new line below the original, with the remaining quantity to handle filled in and with the Zone Code and Bin Code fields empty. This means that the user is free to decide where to store the rest of the items.

Furthermore, the program allows for storing the items in a different unit of measure than specified on the Warehouse FastTab on the SKU/item card. To view the alternative, click the Actions icon on the lines, and then click Functions, Change Unit of Measure.

The following scenario illustrates the possibility of changing the item unit of measure when putting the item away.

Scenario: Change UOM When Putting the Items Away

The company has decided to purchase one pallet of printing paper, mainly to be used for internal purposes. When the items are put away, they must be stored in boxes.

1. Create a purchase order for vendor 60000, Grassblue Ltd., ordering one pallet of item 80100 to be shipped to the White location, and release the order.



3-12

2. On the Activities part of the Home page, click New Whse. Receipt. In the Location Code field, enter the White location.

3. Click Get Source Documents on the Action Pane, and then select the purchase order just created. Click OK.

FIGURE 3.10 THE WAREHOUSE RECEIPT LINE RETRIEVED FROM THE PURCHASE ORDER

4. On the Action Pane, click Post Receipt.



3-13

5. On the Activities part of the Home page, click Put-aways - All. Open the put-away just created.

6. Click the Place line.

FIGURE 3.11 WAREHOUSE PUT-AWAY DOCUMENT

7. Click the Actions icon on the lines, and then click Functions,

Change Unit Of Measure. The Whse. Change Unit of Measure window appears.

FIGURE 3.12 CHANGING THE UNIT OF MEASURE FOR THE ITEM



3-14

8. In the To Unit of Measure Code field, change the value from PALLET to BOX. The program will update the Quantity field value from 1 to 32 (this is the number of boxes on a pallet).

9. Click OK to confirm the change. The program will change the Qty. to Handle and the Unit of Measure Code fields on the warehouse put-away document accordingly.

FIGURE 3.13 THE ITEM UNIT OF MEASURE CHANGED

10. Click Register Put-away on the Action Pane.

This completes the receiving process.

Cancelling the Receipt

To cancel, or undo, the receipt of an item, use the undo receipt functionality. This functionality is used to undo a receipt that is already posted using the Warehouse Receipt window.

NOTE: It is not possible to undo the receipt of the item(s) that are already put away. To undo the receipt, it is necessary first to delete the related put-away lines (even if they are not registered).

The Undo Receipt function is available from the Posted Purchase Receipt window.



3-15

Demonstration: Cancel the Receipt

This demonstration illustrates the lifecycle of the warehouse receipt.

1. In the Navigation Pane, click Home, Purchase Orders. Browse to the order to create a warehouse receipt. Open the window for the purchase order.

2. Ensure the purchase order is released. Click Actions, Functions, Create Whse. Receipt. The warehouse receipt is created.

3. In the Navigation Pane, click Home, Warehouse Receipts. Browse to the receipt just created and open its window.

4. Verify that the value in the Qty. to Receive field in the warehouse receipt is equal to the value that was in the Qty. to Receive field in the purchase order. Post the warehouse receipt by clicking Post Receipt on the Action Pane. The warehouse put-away is automatically created because the White location, selected in the Location Code field in the warehouse receipt, is not set up to use a put-away worksheet.

Now it is necessary to delete the put-away lines to undo the posted receipt.

5. On the Activities part of the Home page, click Put-aways - All. Browse to the last put-away and open its card.

6. Click Actions, Delete. Click Yes to confirm the deletion.

NOTE: The put-away you have just deleted can be recreated from the posted warehouse receipt. To do that, on the Action Pane of the Posted Whse. Receipt window, click Create Put-away.



3-16

Now everything is ready for canceling the posted receipt.

7. From the Navigation Pane, click Posted Documents, Posted Purchase Receipts.

8. In the Posted Documents list, click Posted Purchase Receipt. Browse to the receipt that needs to be cancelled and open the window for it. In this example, it is the last receipt in the list.

FIGURE 3.14 THE POSTED PURCHASE RECEIPT WINDOW



3-17

9. To cancel a posted purchase receipt line, select the line, and click Actions, Functions, Undo Receipt. A message appears requiring the confirmation of cancelling the receipt line(s).

FIGURE 3.15 CONFIRMING THE INTENTION TO CANCEL THE RECEIPT

10. Click Yes to confirm the deletion.

The program creates an additional line with a negative quantity in the posted receipt document.

FIGURE 3.16 THE POSTED RECEIPT CANCELLED



3-18

As a result of cancelling the receipt, the program performs the following:

• The values in the Qty. to Receive and Quantity Received fields in the Purchase Order window are updated with the new quantities.

FIGURE 3.17 QUANTITIES UPDATED AS A RESULT OF CANCELLING THE RECEIPT

• A warehouse entry for the new negative line is created and posted.



3-19

To view the changes, click Departments>Warehouse>History, and in Registers, click Warehouse Registers. Browse to the last register and click Related Information, Register, Warehouse Entries.

FIGURE 3.18 A WAREHOUSE ENTRY TO REGISTER CANCELLATION OF THE RECEIPT

NOTE: If the warehouse receipt is only partially posted, the cancelled quantity will be added to the value in the Qty. to Receive field on the warehouse receipt line.

NOTE: If the warehouse receipt line included cross-docking, the corresponding sales order lines will also be updated.



3-20

Lab 3.1 - Receiving and Putting Items Away In this lab you will practice receiving and putting the items away.

Scenario

A purchaser at Cronus creates a purchase order for 15 units of item LS-75 from vendor 30000.

The warehouse manager requires five units be put away in the Staging Zone on bin W-06-0003 and the rest to be put away in the Bulk Zone in an available bin.

The vendor must ship the order to the WHITE warehouse.

Your task is to carry out all the required warehouse activities to make the items available for sale and picking.

Challenge Yourself!

Create a purchase order which will turn into a put-away with a line split.

Need a Little Help?

1. Create a purchase order. 2. Create and post a warehouse receipt. 3. Create a warehouse put-away and split the line. 4. Register a warehouse put-away.

Step by Step

Create a purchase order

1. On the Activities part of the Home page, click New Purchase Order.

2. In the Buy-from Vendor No. field, enter 30000, in the Vendor Invoice No. field, enter 30000, in the Location Code field on the Shipping FastTab, select the WHITE location.

3. On the purchase line, in the Type field, select Item, in the No. field, select item LS-75, in the Quantity field, enter 15. Leave the value in the Direct Unit Cost Excl. VAT field as is (for test proposes).

4. Release the document by clicking Release on the Action Pane.



3-21

Create and post a warehouse receipt

1. From the Purchase Order window, create a warehouse receipt by selecting the Actions, Functions, Create Whse. Receipt.

2. On the Warehouse Receipt window that appears, check the item values and post it by clicking Post Receipt. Confirm the posting of the receipt.

The program has updated the quantity in the relevant field on the lines of the purchase order and created a put-away activity.

Create a warehouse put-away and split the line

1. On the Activities part of the Home page, click Put-aways - All. Open the put-away just created. Select the line with Place as the action type, and in the Qty. to Handle field, change the value from 15 to 10. By default, the Activity Type, Zone Code and Bin Code fields on the warehouse put-away lines are invisible. To make them visible, right-click the field caption above the lines, select Choose Columns and select whichever fields to make visible.

2. Create a new line with the action type of Place by splitting the line. To do this, on the lines, click Actions, Functions, Split Line. In the Zone Code field, select STAGE, and in the Bin Code field, select W-06-0003.

Register a warehouse put-away

On the Action Pane, click Register Put-away to post the Warehouse Put-away document. Confirm the posting of the put-away.



3-22

Lab 3.2 - Cancelling the Receipt In this lab you will practice cancelling receipts.

Scenario

A purchaser at Cronus creates a purchase order for 10 units of item LS-120 from vendor 40000 with Vendor Invoice # 40000. The vendor must ship the order to the WHITE warehouse.

After posting the warehouse receipt the warehouse manager receives information that pertains to when all the required units are to be delivered to the Green location.

Your task is to carry out all the required warehouse activities to make the items available for sale and picking.

Challenge Yourself!

You must create a purchase order, after posting it delete a put-away, and cancel the receipt.

Need a Little Help?

1. Create a purchase order. 2. Create and post a warehouse receipt. 3. Delete a warehouse put-away. 4. Cancel the receipt.

Step by Step

Create a purchase order

1. On the Activities part of the Home page, click New Purchase Order.

2. In the Buy-from Vendor No. field, enter 40000, in the Vendor Invoice No. field, enter 40000, in the Location Code field on the Shipping FastTab, select the WHITE location.

3. On the purchase line, in the Type field, select Item, in the No. field, select item LS-120, in the Quantity field, enter 10. Leave the value in the Direct Unit Cost field as is (for test proposes). On the Action Pane, click Release to release the document.



3-23

Create and post a warehouse receipt

1. Form the Purchase Order window, create a warehouse receipt by clicking Actions, Functions, Create Whse. Receipt.

2. On the Warehouse Receipt window that appears, check the value and post it by clicking Post Receipt. Confirm the posting of the receipt.

The program has updated the quantity in the relevant field on the lines of the purchase document and created a put-away activity.

Delete a warehouse put-away

1. On the Activities part of the Home page, click Put-aways - All. Open the put-away just created.

2. Click Actions, Delete to delete the warehouse put-away document.

Cancelling the receipt

1. In the Navigation Pane, click Posted Documents, Posted Purchase Receipts. Open the posted purchase receipt just created.

2. On the lines, click Actions, Functions, Undo Receipt to cancel any operations with an item. An additional line with a negative quantity is inserted in the posted receipts. The confirmation message appears. Click OK to confirm cancelling the receipt.

Cross-Docking Cross-docking is a means of saving time and effort by directing items on orders awaiting shipment from the receive zone directly to the ship zone without placing them into storage. The program can be instructed to cross-dock in two places: location card and item card.

To specify cross-docking for a location:

1. In the Navigation Pane, click Reference Data, Locations.



3-24

2. Browse to the White location and open its card. 3. Expand the Warehouse FastTab.

FIGURE 3.19 SETTING UP THE LOCATION FOR CROSS-DOCKING

4. Select the Use Cross-Docking check box to indicate that this location is set up to use cross-docking.

5. Fill in the Cross-Dock Due Date Calc. field. The time period in this field indicates how far ahead from the work date the program will look for cross-dock opportunities at this location.

On the item card, indicate that an individual item needs to be cross-docked:

1. To open the item card, click Reference Data, Items.



3-25

2. Open the card for item LS-81. Expand the Warehouse FastTab. 3. Select the Use Cross-Docking check box to indicate that this item

can be used for cross-docking.

FIGURE 3.20 THE ITEM SET UP FOR CROSS-DOCKING

The following scenario illustrates cross-docking in detail.



3-26

Scenario: Cross-Dock the Item

Customer 60000, Blanemark Hifi Shop, needs 72 pieces of item no. LS-81. Sales order no. 2021 and warehouse receipt no. RE000004 is created. Your task is to receive the items and cross-dock them to the shipping zone for fast delivery to the customer.

1. In the Navigation Pane, click Home, Warehouse Receipts. Open warehouse receipt no. RE000004.

FIGURE 3.21 PREPARING FOR CROSS-DOCKING



3-27

2. On the Action pane, click Calculate Cross-Dock. The program checks for released outbound orders in need of the items on the receipt document, calculates the quantity to cross-dock, and fills in the Qty. To Cross-Dock field.

FIGURE 3.22 THE SUGGESTED QUANTITY TO CROSS-DOCK



3-28

3. Click the AssistButton next to the Qty. to Cross-Dock field, and the Cross-Dock Opportunities window appears.

FIGURE 3.23 THE CROSS-DOCK OPPORTUNITIES WINDOW

The Cross-Dock Opportunities window contains information about the source document from which items are to be cross-docked and the quantity needed to fulfill the order.

4. Click Actions, Functions and then click Autofill Qty. to cross-dock to have the program update the quantity to cross-dock on the line.

5. Click OK to confirm.



3-29

6. In the Warehouse Receipt window, click Post Receipt on the Action Pane. The receipt lines are deleted and a put-away is created.

7. On the Activities part of the Home page, click Put-aways - All. Browse to the put-away just created.

FIGURE 3.24 PUT-AWAY WITH CROSS-DOCKED ITEMS

8. On the Action Pane, click Register Put-away.

NOTE: If the value in the Qty. to Cross-Dock field in the warehouse receipt is less than the total quantity to be received, two lines with the Place action is created in the put-away – one for the quantity to place on the cross-dock bin and one for the quantity to place into the calculated put-away bin (in the BULK or PICK zone for the White location ).

NOTE: When several outbound source documents are retrieved in the Cross-Dock Opportunities window, you can assign a certain quantity on each line. To save such a distribution after a pick is created, use the reservation function by clicking Actions, Functions, Reserve from the Cross-Dock Opportunities window.

For information on the shipping process of cross-docked items, refer to the chapter on Shipping.



3-30

Summary Receiving items involves the following procedures:

1. Creating and releasing a purchase order. 2. Creating and posting a warehouse receipt. 3. Creating and registering a put-away.

Only after the last procedure is completed, are the items received available for picking.

To save time on handling items that must be shipped from the receive zone directly to the ship zone, use the cross-docking functionality.



3-31

Test Your Knowledge 1. What are the two options to retrieve the lines of a released purchase return

order from within a warehouse receipt?

2. True or False: As soon as a warehouse receipt is posted, the items are available for picking.

3. How is the unit of measure changed on the Place line of a put-away document?



3-32

4. What can be done to ensure that it is possible to undo a posted receipt?

5. Complete the following sentence: Cross-docked items are directed from the _______ zone to the _______ zone without placing them into storage.



3-33

Quick Interaction: Lessons Learned Take a moment and write down three Key Points you have learned from this chapter

1.

2.

3.



3-34

Solutions Test Your Knowledge

1. What are the two options to retrieve the lines of a released purchase return order from within a warehouse receipt?

MODEL ANSWER:

From a warehouse receipt, use the Get Source Documents function or the filter function. Use Filters to Get Src. Docs to retrieve source document lines.

2. True or False: As soon as a warehouse receipt is posted, the items are available for picking.

MODEL ANSWER:

False. As soon the receipt is posted, the items become part of inventory available for sale but are not yet ready for picking.

3. How is the unit of measure changed on the Place line of a put-away document?

MODEL ANSWER:

The Change Unit of Measure function is called on the put-away card.

4. What can be done to ensure that it is possible to undo a posted receipt?

MODEL ANSWER:

To undo the receipt, it is necessary to delete the related put-away lines first.

5. Complete the following sentence: Cross-docked items are directed from the _______ zone to the _______ zone without placing them into storage.

MODEL ANSWER:

Cross-docked items are directed from the receive zone to the ship zone without placing them into storage.
